How much money do you think you’ll need to receive each year of your retirement? According to the investment manager Schroders, working people in the UK aged 55 and over believe this figure would equate to 66% of their current income, but the reality according to UK retirees is actually 53%. Despite the 13% shortfall, the majority of retired people (92%) felt their retirement income was sufficient. This may not come as a surprise if we consider they are likely to be part of the baby boomer generation and therefore enjoy significant wealth compared to future generations of retirees who quite possibly won’t have the benefit of a final salary pension plan. It might also be the reason that these pensioners can afford to invest one fifth of their retirement income, with the aim of further improving living standards later in life – putting money away for potential care costs, or perhaps boosting their estate for the benefit of their descendants.

The fact remains, however, that expectations can often differ from reality; creating a potential shock in store when you reach retirement. In its report, for instance, Schroders found that while people of working-age might expect to spend 38% on living costs in retirement, the figure is closer to 53%. It’s clear that the more you save, the more comfortable your retirement (subject to the usual investment ups and downs of course). And when it comes to making investment decisions for retirement, advice is key. Whether you’re early on in your career and just starting to think about putting money aside for retirement, or your last day at work is looming and you’re preparing for a new phase in life, the investment and savings decisions you make now can make all the difference to how comfortable you are in your retirement. Pensions can be quite complicated so please do get in touch with one of our Pension advisers to talk you through the options.